Papa John’s founder John Schnatter says resigning was a 'mistake'

John Schnatter resigned last week after publicly apologizing for using the slur during media training with a marketing agency.

Papa John's has already asked Schnatter to stop talking with the media about the company, the statement said, and has formally ended the "Founder Agreement" it had that defined Schnatter's role as the image and spokesman for the brand.

Still a member of the board, Schnatter, according to regulatory filings, as of March held 29 percent of Papa John's shares, now worth about $500 million.

He is also questioning how the company's board investigated his use of a racial slur. Schnatter also owns a $6 million condo in Naples, Florida, and his real estate company owns 57 acres of land in Louisville suburb Anchorage, Kentucky, too. "I agreed, though today I believe it was a mistake to do so", Schnatter wrote in the letter, which was dated on Saturday. "I will not allow either my good name or the good name of the company I founded and love to be unfairly tainted".

"(O) ne of their attorneys said they would conduct a smear campaign against the company and me unless we paid them what he was asking for", Schnatter said in the letter. The marketing firm did not respond to requests for comment.

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A representative for Schnatter declined to comment on whether he was considering legal action. "But they actually wanted to get into that vocabulary, and I said absolutely not".

The company's Twitter page had been silent following Schnatter's most recent comments until Friday when it tweeted an open letter from new CEO Steve Ritchie.

During the May call, Schnatter tried to downplay controversial remarks he made last November about how the NFL was handling players protesting during the National Anthem.

According to Fox Business, Schnatter was telling executives during the call that KFC founder Colonel Harland Sanders had 'called black people (the n-word)' without scrutiny.

"The company has specifically requested that Mr. Schnatter cease all media appearances, and not make any further statements to the media regarding the company, its business or employees", it said in a statement late Sunday.

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